Bill Text: IA SF191 | 2013-2014 | 85th General Assembly | Introduced

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Bill Title: A bill for an act relating to wage payment collection issues arising between employers and individuals who provide services to employers, providing penalties and remedies, and including effective date provisions. (See SF 2295.)

Spectrum: Partisan Bill (Democrat 21-0)

Status: (Introduced - Dead) 2014-02-17 - Subcommittee reassigned, Dotzler, Dearden, and Houser. S.J. 272. [SF191 Detail]

Download: Iowa-2013-SF191-Introduced.html

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Senate File 191 - Introduced
SENATE FILE 191
BY DOTZLER , BOLKCOM , DVORSKY ,
GRONSTAL , JOCHUM , BLACK ,
McCOY , QUIRMBACH , MATHIS ,
SCHOENJAHN , HATCH , HART ,
RAGAN , SODDERS , PETERSEN ,
TAYLOR , HORN , WILHELM ,
BRASE , DEARDEN , and
COURTNEY
(COMPANION TO HF 38 BY HUNTER)
A BILL FOR
An Act relating to wage payment collection issues arising
between employers and individuals who provide services to
employers, providing penalties and remedies, and including
effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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Section 1. Section 91A.5, subsection 1, unnumbered
paragraph 1, Code 2013, is amended to read as follows:
An employer shall have the burden to establish that a
deduction from employee wages is lawful. An employer shall not
withhold or divert any portion of an employee’s wages unless:
Sec. 2. Section 91A.5, subsection 1, paragraph b, Code 2013,
is amended to read as follows:
b. The employer has obtains advance written authorization
from the employee to so deduct for any lawful purpose accruing
to the benefit of the employee.
Sec. 3. Section 91A.6, subsection 1, Code 2013, is amended
to read as follows:
1. An employer shall after being notified by the
commissioner pursuant to subsection 2 do the following :
a. Notify its employees in writing at the time of hiring
what wages and regular paydays are designated by the employer.
b. Notify its employees in writing whose wages are
determined based on a task, piece, mile, or load basis about
the method used to calculate wages and when the wages are
earned by the employees.
b. c. Notify, at least one pay period prior to the
initiation of any changes, its employees of any changes in
the arrangements specified in this subsection 1 that reduce
wages or alter the regular paydays. The notice shall either
be in writing or posted at a place where employee notices are
routinely posted.
c. d. Make available to its employees upon written request,
a written statement enumerating employment agreements and
policies with regard to vacation pay, sick leave, reimbursement
for expenses, retirement benefits, severance pay, or other
comparable matters with respect to wages. Notice of such
availability shall be given to each employee in writing or by a
notice posted at a place where employee notices are routinely
posted.
d. e. Establish, maintain, and preserve for three
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calendar years the payroll records showing the hours worked,
wages earned, and deductions made for each employee and
any employment agreements entered into between an employer
and employee. Failure to do so shall raise a rebuttable
presumption that the employer did not pay the required minimum
wage under section 91D.1.
Sec. 4. Section 91A.6, subsection 2, Code 2013, is amended
by striking the subsection.
Sec. 5. Section 91A.6, subsection 4, Code 2013, is amended
by striking the subsection and inserting in lieu thereof the
following:
4. a. On each regular payday, the employer shall send to
each employee by mail or shall provide at the employee’s normal
place of employment during normal employment hours a statement
showing the wages earned by the employee, the deductions made
for the employee, and the following information, as applicable:
(1) For each employee paid in whole or in part on an hourly
basis, the statement shall show the hours the employee worked.
(2) For each employee paid based on a percentage of sales or
based on a percentage of revenue generated for the employer,
the statement shall include a list of the amount of each sale
or the amount of revenue during the pay period.
(3) For each employee whose pay is based on the number
of miles or loads performed, the statement shall include the
applicable number performed during the pay period.
b. An employer who provides each employee access to view an
electronic statement of the employee’s earnings and provides
the employee free and unrestricted access to a printer to print
the employee’s statement of earnings, if the employee chooses,
is in compliance with this subsection.
Sec. 6. Section 91A.8, Code 2013, is amended to read as
follows:
91A.8 Damages recoverable by an employee.
When it has been shown that an employer has intentionally
failed to pay an employee wages or reimburse expenses pursuant
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to section 91A.3 , whether as the result of a wage dispute or
otherwise, the employer shall be liable to the employee for
any the unpaid wages or unreimbursed expenses that are so
intentionally failed to be paid or reimbursed , plus liquidated
damages, court costs , and any attorney’s attorney fees incurred
in recovering the unpaid wages or unreimbursed expenses
and determined to have been usual and necessary. In other
instances the employer shall be liable only for unpaid wages or
expenses, court costs and usual and necessary attorney’s fees
incurred in recovering the unpaid wages or expenses.
Sec. 7. Section 91A.10, subsection 5, Code 2013, is amended
to read as follows:
5. An employer shall not discharge or in any other manner
discriminate against any employee because the employee has
filed a complaint, assigned a claim, or brought an action under
this section or has cooperated in bringing any action against
an employer.
5. a. An employer or other person shall not discharge or
in any other manner discriminate or retaliate against any of
the following:
(1) An employee or other person for exercising any right
provided under this chapter or any rules adopted pursuant to
this chapter.
(2) Another employee or person for providing assistance to
an employee or providing information regarding the employee or
person.
(3) Another employee or person for testifying or planning
to testify in any investigation or proceeding regarding the
employee or person.
b. Taking adverse action against an employee or other person
within ninety days of an employee’s or other person’s engaging
in any of the activities in paragraph “a” raises a presumption
that such action was retaliation, which may be rebutted by
evidence that such action was taken for other permissible
reasons.
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c. Any employee may file a complaint with the commissioner
alleging discharge , or discrimination , or retaliation within
thirty days after such violation occurs. Upon receipt of the
complaint, the commissioner shall cause an investigation to be
made to the extent deemed appropriate. If the commissioner
determines from the investigation that the provisions of this
subsection have been violated, the commissioner shall bring
an action in the appropriate district court against such
person. The district court shall have jurisdiction, for cause
shown, to restrain violations of this subsection and order all
appropriate relief including rehiring or reinstatement of the
employee to the former position with back pay.
Sec. 8. Section 91A.10, Code 2013, is amended by adding the
following new subsection:
NEW SUBSECTION . 6. A civil action to enforce subsection 5
may also be maintained in any court of competent jurisdiction
by the commissioner or by any party injured by a violation
of subsection 5. An employer or other person who retaliates
against an employee or other person in violation of subsection
5 shall be required to pay the employee or other person
an amount set by the commissioner or a court sufficient to
compensate the employee or other person and to deter future
violations, but not less than one hundred fifty dollars for
each day that the violation occurred.
Sec. 9. NEW SECTION . 91A.15 Commissions earned date.
An employer shall not require that a person be a current
employee to be paid a commission that the person otherwise
earned.
Sec. 10. EFFECTIVE DATE. This Act takes effect January 1,
2014.
EXPLANATION
This bill relates to employers and individuals who perform
labor and wage payment collection.
Code section 91A.5 is amended to provide that the employer
has the burden to establish that a deduction from employees’
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wages is lawful and that the employer must obtain written
authorization for the deduction from the employee in advance.
Code section 91A.6(1) is amended to remove the requirement
that an employer be notified by the division of labor services
of the department of workforce development before the employer
is required to fulfill the requirements in subsection 1
relating to employee wage and benefit information. In new
Code section 91A.6(1)(b), the employer is required to notify
employees in writing whose wages are determined based on
a task, piece, mile, or load basis about the method used
to calculate wages, when wages are earned. Code section
91A.6(1)(e) is amended to establish a rebuttable presumption
that an employer did not pay the minimum wage if the employer
does not maintain proper payroll records.
Current Code section 91A.6(2), setting out certain employer
compliance procedures, is stricken.
Code section 91A.6(4) is amended so that the employer
must send to each employee by mail, or at the place of
business during the employee’s working hours a statement of
the employee’s earnings, deductions made, and as applicable
the following: for an employee paid hourly, the number of
hours worked during the pay period; for an employee paid on a
percentage of sales or revenue generated, a list of sales or
amount of revenue during the pay period; and for an employee
paid based on the number of miles or loads performed, the
applicable number performed during the pay period. An employer
who provides an electronic statement and gives employees free
and unrestricted access to print out the statement is in
compliance with the Code section.
In Code section 91A.8, when any specified violation of Code
chapter 91A occurs, even if unintentional, an employer shall be
liable for unpaid wages or expenses plus liquidated damages,
court costs, and attorney fees incurred in recovering wages.
Code section 91A.10(5), which covers retaliatory actions
by employers or others, is expanded to cover persons other
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than employees who act under Code chapter 91A with respect
to an employee. A 90-day period is established during which
any action against an employee or other person is rebuttably
presumed to be retaliatory. New subsection 6 is created in
Code section 91A.10 to allow the commissioner or any injured
party to maintain a civil action in any court of proper
jurisdiction. An employer who retaliates against an employee
or other person shall compensate the injured party an amount
set by the commissioner or the court, but not less than $150
for each day of the violation.
In new Code section 91A.15, an employer shall not require
that an individual be a current employee to be paid an earned
commission.
The bill takes effect January 1, 2014.
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